Bad Contracts, Sloppy Agents

When we look at what is happening the last few weeks in our industry, what is the number one concern? If you were going to make an offer on a home to purchase it, what would be the one thing you would focus on?

The financing

In the last three weeks I have received four of the worst contracts I have seen fired off by agents to my sellers.

The contracts were missing:

A pre-approval or even a pre-qualification letter from a lender.

Signatures stating they have an earnest money check.

Signatures from their brokers stating that they reviewed the offers.

Signature from the agent on the lead based paint addendums.

Three did not have a cooperating broker's agreement. (I guess they did not want to get paid).

Two of the contracts were marked N/A for special provisions and then had special provisions typed in.

Two were expired before they even transmitted them and one gave my out of state client ½ a day to respond.

All of these agents must have attended or missed the same contract writing class.

With the lending industry going through their difficult times and real estate markets going through changes; it is not time for amateurs. If you do not know what you are doing, team up with someone who does or take up another occupation. I hear there are shortages in the hair cutting and fast food industries.

Randy Prothero is well established as an expert in working with military / VA clients and first time home buyers. His home seller's (listing) campaign is one of the most aggressive marketing programs in the area. His luxury home listings sell faster and for more money.

Based out of Mililani, Hawaii. Randy services the island of Oahu (Honolulu County) Performs mediations and ombudsman services for the Board of Realtors. To improve overall professionalism in his area Randy also offers classes for real estate agents.

I would like to comment on: "The brokers are also part of the problem, they are not overseeing the agents."

I have been seeing some terrible contracts lately from some of our agents. After reviewing one I was so shocked I highlighted all the errors, printed it, and drove 3 hours to go over it with the agent that wrote it. I spent the whole day doing contracts and counters. Ok, so far so good.

Then yesterday I was reviewing another one, and lo and behold almost the same mistakes........I told the agent that she needed to go back to class and learn as obviously my teaching wasn't getting through. I also told her no more contracts are to go anywhere before I see them first......and this agent has been in the business for 23 years.

I already have a formal letter written, and a ban on any dual agency until and such time as this agent completes a Formal Contract class.....

Randy... it just makes you wonder if they are lazy, lack common sense, or just don't know what they are doing. Yes, it's sad no matter what the answer is. Because each answer as a solution. Keep venting to make others aware of this.

This is all pretty much part and parcel of the current market climate. Like many say here in this comment trail, lets hope a lot of this kind of work falls by the wayside, and those that don't aspire to excellence along with it.

Just saw a comment you made on something of Nima's and agree with you. We just posted a different take on the mortgage climate and think we pretty much solved it. Or maybe not.

No need to apologize for stating the obvious. We recently read something of Lenn's about someone who worked for her that is a Lazy Boy salesman now. That wasn't venting either. And you are right on... it is no time for amateurs.

I see this kind of contracts all the time and it drives me crazy. Contract states they have received the earnest money so I ask for a copy of the check. Oh!!! it seems that it will be a week before they can give her the check. My thought---well duh, you wrote in the contract that YOU HAD THE EM. It's amazing.

Randy - On the plus side, you are getting activity. On the negative side, you are getting activity from less than competent agents. Given a choice, in my market, I would take the incompetent ones at this time...but only while it was slow. Realistically, we should all expect only the very best quality from colleagues and let them know, in a gentle way, you are lacking! Good job, Rando~~

Randy, right on! As a coordination team that is often left to clean up the mess and close these transactions, we appreciate agent's that realize that if the contract is poorly written, chances are it is only going to get worse as the transaction progresses.

TLW, we have a saying in our office: "Nobody ever handed Picasso a box of crayons and expected a masterpiece". Unfortunately, we get a lot of crayons thrown our way these days.

Randy.. This shouldn't surprise you.. our REALTOR® associations refuse to demand higher standards for new licensees.. If you pass the mirror breath test you can be an agent.. I suppose this all works when times are easy but in today's market there is no room for the poorly trained.. One of these days the pweres that be will finally figure it out... maybe

Its not just the amateurs or new agents. I recieved a purchase contract on one of my listings that was just about as bad as you described from an agent that had been in the business for over 30 years! Some of the veteran agents are just as bad as the new agents.

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